Is HD or MSFT cheaper?

On trailing earnings, MSFT is cheaper: HD trades at a 23.26 P/E and MSFT at 22.55.

Which has grown faster, HD or MSFT?

Over the past five years, MSFT grew revenue faster — HD at a 3.34% CAGR versus MSFT at 14.75%.

Does HD or MSFT pay a bigger dividend?

HD yields 2.83% and MSFT yields 0.94% based on trailing dividends and the latest price.

Is HD or MSFT more profitable?

MSFT runs the higher net margin — HD at 8.41% versus MSFT at 39.34%.

Which has been the better investment, HD or MSFT?

Over the past 10-year, MSFT delivered the higher annualized total return — HD at 12.62% versus MSFT at 23.94%. Past performance doesn't predict future results.

The Home Depot, Inc. (HD) vs Microsoft Corporation (MSFT)

MSFT leads on 13 of 17 compared metrics.

A side-by-side comparison of The Home Depot, Inc. and Microsoft Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 18, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

The Home Depot, Inc.

$326.54B

$327.48Consumer Cyclical

MSFT

Microsoft Corporation

$2.81T

$378.91Technology

Total return — HD vs MSFT

growth of $100 · last 30y

HD +2680.0%MSFT +4853.1%MSFT compounded faster

HD MSFT

HD vs MSFT: by the numbers

•MSFT is the larger company ($2.81T vs $326.54B market cap).
•MSFT trades at the lower earnings multiple (22.55 vs 23.26 P/E).
•MSFT converts more revenue to profit (39.34% vs 8.41% net margin).
•MSFT grew revenue faster over the past five years (14.75% vs 3.34% CAGR).
•HD pays the higher dividend yield (2.83% vs 0.94%).

Which is better, HD or MSFT?

Metric tally: HD 4 · MSFT 13

It depends on what you're optimizing for:

ValueMSFT(lower P/E)

GrowthMSFT(faster 5Y revenue CAGR)

IncomeHD(higher dividend yield)

QualityMSFT(higher ROIC)

Metrics side by side

Valuation

Metric	HD	MSFT
P/E ratio	23.26	22.55●
Forward P/E	20.35	19.48●
P/S ratio	1.96●	8.86
P/B ratio	23.51	6.81●
PEG ratio	6.53	2.34●
EV / EBITDA	15.80	14.16●
FCF yield	4.39%●	2.58%

Profitability

Metric	HD	MSFT
Gross margin	33.13%	68.31%●
Operating margin	12.45%	46.80%●
Net margin	8.41%	39.34%●
ROE	100.99%●	30.22%
ROIC	19.03%	21.63%●

Dividends

Metric	HD	MSFT
Dividend yield	2.83%●	0.94%
Payout ratio	64.89%	25.99%

Growth (annualized)

Metric	HD	MSFT
Revenue CAGR (5Y)	3.34%	14.75%●
EPS CAGR (5Y)	3.56%	18.68%●
FCF CAGR (5Y)	-3.39%	6.27%●
Total return CAGR (5Y)	4.13%	8.64%●

Frequently asked

Which is better, HD or MSFT?: It depends on your goal. value: MSFT (lower P/E); growth: MSFT (faster 5Y revenue CAGR); income: HD (higher dividend yield); quality: MSFT (higher ROIC). Across all compared metrics, MSFT leads 13 to 4.
Is HD or MSFT cheaper?: On trailing earnings, MSFT is cheaper: HD trades at a 23.26 P/E and MSFT at 22.55.
Which has grown faster, HD or MSFT?: Over the past five years, MSFT grew revenue faster — HD at a 3.34% CAGR versus MSFT at 14.75%.
Does HD or MSFT pay a bigger dividend?: HD yields 2.83% and MSFT yields 0.94% based on trailing dividends and the latest price.
Is HD or MSFT more profitable?: MSFT runs the higher net margin — HD at 8.41% versus MSFT at 39.34%.
Which has been the better investment, HD or MSFT?: Over the past 10-year, MSFT delivered the higher annualized total return — HD at 12.62% versus MSFT at 23.94%. Past performance doesn't predict future results.

Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 18, 2026.